Serbia expects to extend its Russian gas supply arrangement at around €318 per 1,000 cubic metres, while continuing efforts to develop alternative suppliers and import routes. The expected extension has not been publicly confirmed in terms of its final duration.
The timing also coincides with the expiry of a U.S. operating waiver affecting NIS, Serbia’s dominant oil company. At the same time, Belgrade is developing alternative gas infrastructure and addressing Russian ownership in NIS.
Gas costs remain important for industry
Maintaining supplies at around €318 per 1,000 cubic metres would limit winter cost pressures for Serbian businesses. Natural gas is used by industries including chemicals, metals, food processing and building materials, as well as district heating systems. Future gas-fired power generation could increase demand further. Serbia has nevertheless continued to expand its options for importing gas from alternative sources.
New routes broaden supply options
The Serbia-Bulgaria gas interconnector provides access to Azerbaijani gas and potentially to LNG delivered through Greece. Additional connections with Romania and North Macedonia are planned, while a newly approved $600 million World Bank gas programme is expected to support transmission, storage and other gas-sector infrastructure. Bulgarian state gas supplier Bulgargaz has also secured a 10-year Serbian wholesale licence, adding another potential participant to Serbia’s gas market.
Alternative supplies carry additional costs
Expanding import routes does not necessarily result in lower gas prices. LNG involves shipping, regasification and transport costs, while Azerbaijani supplies currently account for only part of Serbia’s annual gas consumption of approximately 3 billion cubic metres. Storage capacity also remains a factor. Banatski Dvor currently has working capacity of about 450 million cubic metres, with planned expansion to 750 million cubic metres.
Serbia’s gas strategy is therefore focused on increasing the number of available suppliers and routes while expanding storage, rather than relying on a single source. At approximately €318 per 1,000 cubic metres, Russian gas remains a significant commercial option for the Serbian market as alternative infrastructure and supply arrangements continue to develop.
